Import of 'Fake' Wristwatches from Hong Kong... Trade Commission Orders Sales Ban and Fines

Ministry of Trade Commission Rules 'Wristwatch Trademark Infringement' as Unfair Trade Practice

[Sejong=Asia Economy Reporter Kwon Haeyoung] A company that imported counterfeit wristwatches from overseas, including Hong Kong, and sold them domestically was ordered to stop importing and selling the watches, dispose of inventory, and pay fines for unfair trade practices.

The Trade Commission of the Ministry of Trade, Industry and Energy held its 410th meeting on the 15th and approved the investigation into 'wristwatch trademark infringement.' The Trade Commission ruled that Company A's import and sales of wristwatches constituted unfair trade practices and ordered Company A to publicly announce the sanctions.

Daniel Wellington, a watch company based in Sweden, filed a request with the Trade Commission to investigate unfair trade practices against Company A, which was suspected of importing and selling wristwatches infringing on its trademark rights. The Trade Commission conducted a thorough investigation over approximately 10 months, including document reviews, on-site inspections, and expert evaluations involving Daniel Wellington and Company A. The investigation confirmed that Company A imported wristwatches infringing Daniel Wellington's trademark rights from Hong Kong and sold them through its online shopping mall and other channels.

A Trade Commission official stated, "When companies suffer damages due to the import and export of products infringing intellectual property rights such as patents, trademarks, and copyrights domestically, they can quickly receive relief within 6 to 10 months through the 'Unfair Trade Practices Investigation System.' We hope many companies utilize the Trade Commission's unfair trade practices investigation system."

Small and medium-sized enterprises applying for unfair trade practice investigations can receive support of up to 50 million KRW within 50% of the agent appointment costs.